Aruba Networks, Inc. said that that it expects its revenues for the quarter ended April 30 to fall below its guidance, citing delays in customer orders.
“In April, we saw a push out in customer orders across the Americas, Europe and Asia,” said Dominic Orr, president and CEO of Aruba. “We attribute this weakness primarily to a challenging economic environment worldwide.”
Despite continued rollout of advanced networks in the U.S. and around the world, multiple network companies have experienced slow-downs in the first quarter of this year. Wi-Fi provider Ruckus Wireless did not meet its guidance due in part to delayed deployments in the Americas. Several companies, including wireless backhaul provider Ceragon, said that longer sales cycles impacted their results last quarter.
Ira Palto, president and CEO of Ceragon, said that it’s 18% year-over-year drop in revenue in the first quarter was influenced by operators trying to get a handle on their business models and network evolution.
“We are not seeing carriers cancelling or reducing the scope of their planned projects, and the delays in closing deals relate mainly to operator hesitation during a period of reevaluating business models with a network architecture transition on the horizon,” he said.
Interphase, which manufactures connectivity products for customers including Alcatel-Lucent, Samsung, Genband and Oracle, reported quarterly results that “reflect a continued weakness in the telecom market worldwide,” according to CEO and president Gregory Kalush. Interphase earned revenues of $3.3 million, which was $734,000 less than the same period last year. Both service revenues and telecom and enterprise product revenues were down, with the biggest loss in the product area
Aruba expects revenue for its fiscal third quarter of 2013 to be between $144 million to $147 million, significantly below the company’s expectations of $159 million to $161 million. Non-GAAP net income is expected to be in the range of $0.11 -$0.12 per share compared with guidance of about $0.20 per share.
The company will release full results on May 16 after the market closes.
